… and why it matters to your mortgage
If you’ve ever been knee-deep in a mortgage deal and heard terms tossed around like desktop appraisal, drive-by appraisal, or full appraisal, you might wonder—who exactly is doing these things? Is there some wizard behind the curtain pulling numbers out of thin air? Not quite. Behind every appraisal type is a different process, and more importantly, a different professional or tool driving the outcome.
Understanding who provides these appraisals and how they work helps you, whether you’re a realtor or a homeowner, set expectations, manage timelines, and understand why some appraisals are free and others come with a hefty invoice.
Allow me to pull back the curtain and make sense of it all.
Here’s What I’ll Cover:
Automated Valuation Models (AVMs)
Automated Valuation Models (AVMs)
Who provides it:
AVMs are generated by technology platforms, not humans. Big data algorithms crunch information from MLS sales, land registry, tax assessments, and other market metrics. Companies like Purview and Teranet provide these reports to lenders almost instantly.
How it works:
The lender clicks a button, the system does its thing, and a value appears. No one sets foot on the property, and no appraiser ever sees it.
What this means for you:
AVMs are great for quick approvals and refinancing in cookie-cutter subdivisions where comparable sales are easy to find. They’re often free to the borrower (or at a small cost: ~$100), but only when the lender decides they’re reliable enough.
Example:
One of my clients was refinancing their suburban detached in Oshawa. The lender pulled an AVM within seconds—no cost, no fuss, deal done.
Desktop Appraisals
Who provides it:
These are done by licensed appraisers—real people, usually working through appraisal management companies (AMCs) like Solidifi, NAS, or FNF Canada. The appraiser sits at their desk (hence the name) and uses MLS, tax data, and past sales to estimate value without visiting the property.
How it works:
They review photos, previous listings, neighborhood data, and recent comparables, then issue a report addressed directly to the lender.
What this means for you:
This is faster than a full appraisal and less expensive, but it’s only suitable for straightforward properties where condition isn’t in question.
Example:
A realtor I work with had a seller refinancing an older Toronto condo. Instead of sending someone on-site, the lender requested a desktop appraisal. Three days later, we had the report and moved forward.
Drive-By Appraisals
Who provides it:
Again, a licensed appraiser does this, usually contracted through an AMC (Appraisal Management Company). They physically drive to the property, snap exterior photos, and verify it exists, is standing, and appears consistent with MLS descriptions.
How it works:
The appraiser combines what they see from the curb with market data to support a valuation. No one steps inside the home.
What this means for you:
Drive-bys are commonly used for rentals, rural properties, or situations where a full appraisal isn’t deemed necessary but eyes-on verification is still prudent.
Example:
A client of mine had a rural property outside of Peterborough. The lender wanted confirmation it wasn’t in disrepair. A drive-by gave them enough confidence to move forward—less hassle, lower fee.
Full Appraisals
Who provides it:
These are the gold standard, performed by certified appraisers licensed through the Appraisal Institute of Canada (AIC) or similar regulatory bodies. The appraiser visits the property inside and out, takes photos, measures square footage, and documents every relevant feature.
NOTE: When it comes to commercial properties, lenders almost always require what’s called a “Full Narrative Appraisal”. This isn’t a quick drive-by, a desktop, or an AVM. It’s a comprehensive, detailed, and professionally prepared document that can be 50–150 pages long. It digs into not just the building itself but the economics of the investment. Appraisers require special training and certification/designation in order to provide this type of appraisal.
How it works:
They inspect the property, compare it to recent sales, and issue a detailed report with photos, analysis, and a clear market value.
What this means for you:
Full appraisals are necessary for complex properties, unique homes, rural areas, or higher-risk borrowers. They cost more and take longer, but they give lenders and homeowners the most reliable valuation.
Example:
I helped a client buying a custom-built home in a small town. No AVM or desktop would cut it—the lender needed a full appraisal. It cost $600, but it protected everyone involved.
How Realtors and Clients Can Use This Knowledge
For Realtors:
When you understand who’s doing what, you can help set realistic expectations for timelines and costs. Explaining the difference between an AVM and a full appraisal can also help manage your clients’ stress when financing takes a few extra days.
For Homeowners:
If you’re refinancing or switching lenders and want control over the appraisal, ask upfront about the type. If you’re considering a pre-listing appraisal to set an asking price, hire your own appraiser directly—not through the lender’s system.
Storytime: The Appraisal That Wasn’t Enough
I had a client refinancing a semi-detached in Bowmanville. The lender started with an AVM, but the system kicked it back—data was inconsistent. Next step: desktop. Still not enough. Finally, a full appraisal was ordered. Three weeks and three valuation types later, we had our answer.
The lesson? Sometimes the lender escalates appraisal types because each method builds on the next when there’s uncertainty. Being prepared for that saves frustration.
Allen’s Final Thoughts
Appraisals aren’t one-size-fits-all. Who provides them—and how—depends on the property, the loan, and the lender’s appetite for risk. Whether it’s a computer, a desk-bound appraiser, or someone standing in your kitchen with a clipboard, it’s all about giving the lender confidence they’re making a safe loan.
Knowing the players behind the scenes helps you anticipate costs, timelines, and questions from clients—and positions you as the expert who has answers, not guesses.
How I Can Help
As your mortgage agent, I help cut through the confusion. I know which lenders lean on AVMs, who prefers full appraisals, and how to position your deal to keep things moving. I also have trusted appraisal contacts if you ever need a private valuation outside the lender’s process.
Whether you’re a realtor guiding clients or a homeowner planning your next move, I’m here to make sure you understand not just the ‘what,’ but the ‘why’ behind every step of your mortgage journey.
